Insights on endorsements

affiliate marketing, deceptive practices, endorsements, FTC, FTC Act, marketing

Acai of Relief? Marketers' Recent Settlement of FTC Charges Serves as a Reminder for Online Advertisers and Affiliate Marketers.

By InfoLawGroup LLP on April 04, 2012

Two online marketers of acai berry products recently settled the FTC's charges that the marketers engaged in deceptive practices by operating "fake news" sites directly and through affiliates to promote acai berry products. Although these cases are extreme examples of deceptive practices, they should serve as an important reminder for companies engaging in affiliate marketing that the FTC actively enforces in this area using the FTC Act, and that companies marketing through affiliates and affiliate marketers must understand and address the FTC's Guides Concerning the Use of Endorsements and Testimonials in Advertising, which were updated in 2009 ("Guides"). As discussed further below, this can pose a challenge for companies of all types advertising through affiliate marketing programs